High Real Interest Rates

CFA Level II Economics
#1

According to the curriculum, high Potential GDP growth leads to high real interest rates and higher expected real asset returns.

I seem to be a little confused by this, wont a country with high potential GDP growth rate reduce the interest rates to induce Capital investment. Does anyone have a logical explanation for this?

Thanks

#2

I believe that the idea is to keep GDP growth at a reasonable level – say, 2% to 3% – to avoid runaway inflation. Higher interest rates slow down GDP growth.